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Race and Gender Discrimination in Bargaining for a New Car

Ian Ayres and Peter Siegelman
The American Economic Review
Vol. 85, No. 3 (Jun., 1995), pp. 304-321
Stable URL: http://www.jstor.org/stable/2118176
Page Count: 18
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Race and Gender Discrimination in Bargaining for a New Car
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Abstract

More than 300 paired audits at new-car dealerships reveal that dealers quoted significantly lower prices to white males than to black or female test buyers using identical, scripted bargaining strategies. Ancillary evidence suggests that the dealerships' disparate treatment of women and blacks may be caused by dealers' statistical inferences about consumers' reservation prices, but the data do not strongly support any single theory of discrimination.

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